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FirstEnergy's profit beats estimates for the first quarter on higher electricity prices
FirstEnergy, a utility company, beat Wall Street expectations for its first-quarter adjusted profits on Wednesday. The utility was helped by a rate increase. U.S. Electric utilities are investing more in infrastructure as a result of extreme weather and a growing demand. This is to meet the demand, but also improve resilience. Rate case proceedings are used by utilities to calculate the cost of electricity, natural gases, private water, and steam according to investments made by customers. As the demand for electricity from AI data centres, domestic manufacturing and electrification of industry increases, power bills will rise. The company reported that its total quarterly distribution deliveries increased by more than 4% in comparison to last year when the weather was mild. The adjusted quarterly profit for its integrated and distribution segments increased by 10 cents each from the previous year. FirstEnergy provides electricity to about 6,000,000 customers in Ohio, Pennsylvania and New Jersey. It also serves West Virginia, Maryland, West Virginia, and West Virginia through its three segments: distribution, integrated transmission, and stand-alone. According to data compiled and analyzed by LSEG, the Akron, Ohio, based company posted an adjusted profit per share of 67 cents in the first three months, compared to analysts' estimates of 61 cents. Reporting by Tanay and Pooja in Bengaluru, editing by Alan Barona
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GM will increase production at Ohio transmission plant
General Motors confirmed on Wednesday that it is increasing the production of transmissions in its Toledo, Ohio plant, and shifting away from manufacturing EV drive units to parts for gasoline cars. Transmission plant is used to support the production of light trucks in Fort Wayne, Indiana. First reported that GM was going to increase production in the Indiana assembly plant after U.S. president Donald Trump announced 25% auto import tariffs. A spokesperson from the automaker stated that the shift in production at Toledo was not due to tariffs. General Motors is revising production plans for Toledo Propulsion in order to accommodate additional capacity of ICE propulsion units, in line with the current market demand. When GM After a $760-million investment, Toledo became the first U.S. factory to produce EV powertrains. The automaker still hasn't produced retail drive units at the Toledo facility. In a memo to workers, Rob Morris, Toledo's plant director, explained that the company has decided to increase capacity in order to meet the current demand for ICE products. The memo stated that the second drive-unit production line would not be updated, and one of the production lines for drive units in the facility will be converted into a transmission. GM made some other changes to its EV plan, including delaying the start of EV production at Orion Assembly Plant in Michigan. It failed to meet its EV production target of producing and wholesale 200,000 EVs across North America by 2024. Instead, it ended up with 189,000 units. Separately, Trump's Tariffs The automakers have changed their ways or expedite investment plans. Some automakers and suppliers are seeking to increase investment in the U.S., to avoid the steep duties. Others are waiting to see whether the duties will stick. Center for Automotive Research Analysis Find out Trump's 25% tariffs on autos, imposed by him in early April, will cost automakers in the U.S. $108 billion in 2025. Import taxes on auto parts are still scheduled to be implemented by May 3. (Reporting and editing by Diane Craft in Detroit, Kalea Eckert and Nora Eckert)
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Newmont profits beat estimates, as the gold rally outweighs weak production.
Newmont, the world's largest gold miner, beat Wall Street expectations for its first-quarter profits on Wednesday. A rally in bullion helped offset lower production and sent its shares up by 2% after-hours. Gold prices have been increasing over the last few quarters, and reached record highs from January to March, when fears over Donald Trump's unpredictable tariff plans sparked a global trade conflict, driving investors towards the safety of gold. Newmont's average quarterly realized gold price jumped 41%, to $2,944 an ounce. Gold production, however, fell 8.3%, to 1,54 million ounces. This was due to lower contributions from non-core operations. In February of last year, the company announced that it would sell off non-core assets to reduce its debt. As of March 31, this debt was $3.22 billion. Newmont announced late last year that it would sell the Eleonore Mine in Canada to UK-based Dhilmar Ltd. for $795 millions and its Musselwhite Gold Mine, located in Ontario, to Orla Mining. The deal was valued at $850million. Discovery Silver, a gold mining company, announced in January that it would purchase Newmont's Porcupine Operations stake in Ontario, Canada for $425 millions. Newmont's quarterly total costs, which reflect the industry's overall expenses, increased 14.7% in the quarter January-March due to lower production. According to LSEG, on an adjusted basis the company earned $1.25 a share for the three months ended March 31. This compares with the analysts' average estimate, which was 90 cents a share. Reporting by Tanay in Bengaluru, Editing by Tasim and Devika Syamnath
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California Governor seeks assistance for struggling oil refiners
California Governor Gavin Newsom directed state officials in California to increase efforts to ensure reliable fuel supplies to the nation's largest auto market. This prompted oil companies to blame state policy for difficult business conditions, and high pump prices. Newsom's April 21 letter to California Energy Commission vice chair Siva Gunda was seen by us on Wednesday. This came just days after Valero Energy announced that it would permanently close or restructure the refinery in Benicia by April 2026. Benicia refinery represents about 9% state crude oil refining capability. Newsom wrote: "I am writing to ask you to intensify the efforts of the State to work closely and immediately with refiners to plan short and long term, as well as to ensure that Californians have access to reliable, safe and affordable transportation fuels." Newsom said that, although the demand for gasoline in California was on a downward trend, it would continue to exist in years to come. The Governor set a deadline of July 1, for the CEC, to make recommendations on how to manage fuel supplies in the state during the energy transition. He also asked the agency to reinforce its belief that refiners could operate profitably. California has one of the most aggressive policies on climate change in the United States and has set a goal for 2035 to ban all new gasoline powered cars. California has some of the highest gasoline prices in the United States, due to its reliance on imports to compensate for a declining supply. Newsom claimed that the Trump administration is responsible for the economic instability and market turmoil which are harming oil companies. A trade group for refining said this assertion was false and blamed California instead. Chet Thompson of the American Fuel & Petrochemical Manufacturers said that Governor Newsom's letter directing the California Energy Commission to'redouble its efforts' to work with refiners to'make them see the value' in serving the Californian market is a joke and a blatant attempt to cover his behind," he wrote in an emailed message. Fuel manufacturers in California struggle to compete and California drivers pay the highest prices for fuel because of state policies. Not the new administration in Washington. Reporting by Nichola Choy Editing by Marguerita Groom
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Gold, stocks and the dollar fall as US tariffs on China are not sustainable
The dollar rose against the euro, and other currencies. Gold, a safe haven for investors, fell as Trump's administration indicated a willingness deescalate the trade war. Scott Bessent, U.S. Treasury secretary, said that the high tariffs between China and the United States are not sustainable. U.S. president Donald Trump told journalists that the U.S. "will have a fair agreement with China," without giving any details. Trump, who had threatened to sack Federal Reserve Chairman Jerome Powell on Tuesday evening, has now backed down from his threats. Peter Cardillo is the chief market economist of Spartan Capital Securities, a New York-based brokerage. Investors have been concerned about U.S. assets due to Trump's tariff war. Stocks were also boosted by some earnings reports in the U.S. Boeing shares were up 6.6% after the company reported a smaller-than-expected quarterly loss. The Dow Jones Industrial Average rose by 426.71 or 1.09% to 39,612.42. The S&P 500 gained 91.83 or 1.73% to 5,379.12. And the Nasdaq Composite increased by 457.34 or 2.79% to 16,755.85. Tesla shares rose 8.1% despite the fact that company results were below analyst expectations. Elon Musk, the Tesla CEO, said in a conference call with analysts that he will significantly reduce his work at the Department of Government Efficiency starting next month so he can focus on his companies. The MSCI index of global stocks rose by 11.56 points or 1.45% to 807.82. The pan-European STOXX 600 ended up 1.78 %. Spot gold fell 3% after hitting record highs recently, to $3,281.6 per ounce. The dollar index (which measures the greenback in relation to a basket including the yen, the euro and others) rose by 0.32%, while the euro fell by 0.88%, at $1.1319. The dollar gained 1.32% against the Japanese yen to reach 143.45. Citadel's CEO and founder Kenneth Griffin stated on Wednesday that Trump’s administration must be cautious about the potential damage done to U.S. Treasury bonds. Investors are worried that the White House's pressure to reduce interest rates could fuel inflation, just as Trumps tariffs increase prices. The benchmark yields on U.S. Treasury securities have remained relatively unchanged. The yield on the benchmark U.S. 10 year notes was unchanged at 4,389% as of late Tuesday. U.S. crude oil fell $1.40, settling at $62.27 per barrel. Brent crude dropped $1.32, settling at $66.12.
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Sources say OPEC+ will consider accelerating output if oil prices drop 3%
The oil prices fell 3% on Tuesday as sources claimed that OPEC+ was considering accelerating their output increases for June. However, losses were reduced following a report stating that U.S. president Donald Trump could reduce tariffs on Chinese imports. Brent crude futures fell $1.92 or 2.85% to $65.52 at 1:42 pm EDT (1742 GMT), while U.S. West Texas intermediate crude dropped $1.99 or 3.13% to $61.68. Three sources familiar with OPEC+ discussions said that several OPEC+ members would suggest to the group that it increase oil production for a second month consecutive in June. Recent tensions have arisen among OPEC+ member countries over the compliance with production quotas. "It would not surprise me if OPEC wanted to increase production." This could cause concern about the cohesion within the cartel. "Maybe they're tired holding back production increases," said Phil Flynn an analyst at Price Futures Group. Brent traded at $68.65 per barrel earlier in session, which was its highest price since April 4. After the OPEC+ announcement, both benchmarks dropped more than $2. Futures pared losses in the early afternoon trading, following a report by the media in which Kazakhstan Energy minister Erlan Akkenzhenov stated that the country was meeting its obligations towards OPEC+. He also said they were working together to find "mutually satisfactory solutions" for its oil production management. Akkenzhenov had earlier said that his country would put national interests ahead of those of OPEC+ producers when deciding the level of its oil production. Kazakhstan angered OPEC+ by producing more than the quota. The Energy Information Administration reported on Wednesday that U.S. crude stockpiles increased while gasoline and distillate stocks posted greater-than-expected declines last week. The EIA reported that crude inventories increased by 244,000 barrels, to 443.1 millions barrels for the week ending April 18. This was a much higher figure than analysts had expected in a poll. They were expecting a draw of 770,000 barrels. Potential for Tariff Reprieval News about trade tariffs has helped to curb some oil prices losses. A source familiar with this matter told Reuters on Wednesday that the Trump administration was considering lowering tariffs for imported Chinese products pending discussions with Beijing. Any action would not be taken unilaterally. A Wall Street Journal article citing an official of the White House said that China's tariffs will likely be reduced by between 50% and 60%. U.S. Treasury secretary Scott Bessent stated that he believes excessively high tariffs will need to be reduced between the U.S. After criticising the Fed's failure to cut interest rates for days, Trump has now backed down from his threat to fire Federal Reserve chair Jerome Powell. This eases investor concerns about economic uncertainty. The U.S. has issued new sanctions against an Iranian shipping magnate who's network deals with Iranian crude oil and liquefied gas worth hundreds of million dollars. (Reporting from Georgina Mccartney in Houston and Shadia Nasralla. Additional reporting by Robert Harvey, London, Jeslyn Lerh, Singapore. Editing by Louise Heavens. David Goodman. Rod Nickel. Nia Williams.
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Sources say that Brazil is pushing for tougher emission goals ahead of the climate summit
Three people familiar with the plans of Brazil, which is hosting this year's United Nations Climate Summit, said that their main objective was to persuade Europe, China, and other developing countries to reduce greenhouse gas emissions to keep global temperatures well below 2 degrees Celsius. Sources said that the goal was set on Wednesday when President Luiz inacio Lula da So and U.N. Sec.-General Antonio Guterres convened 17 leaders from large and small economies to an online closed meeting to discuss stronger commitments to their 2035 emissions targets. Brazilian diplomats work closely with U.N. officials in order to encourage countries that they should submit new emission targets called Nationally Determined Contributions by September. The majority of countries missed the February deadline. Diplomats say that the South American nation wants large economies, such as China and the European Union to be ambitious in their emission reduction plans, particularly China. Mauro Vieira, Brazil's Minister of Foreign Relations, told reporters that the purpose of the meeting is to appeal to these countries to submit their NDCs because they are most often late. He did not elaborate on Brazil's plans. The meeting was attended by Chinese President Xi Jinping and Ursula von der Leyen of the European Commission, French President Emmanuel Macron and leaders from small islands that are directly affected by climate changes. Guterres said Guterres that China had promised to not slow down its commitments at the meeting. "Not only has China announced that it would produce its NDC, but President Xi also said that these would cover all sectors of the economy and all greenhouse gasses. This is the first time China has clarified this point and it's extremely important to climate action," Guterres said. Xinhua, the state news agency, reported that Xi had promised to present China’s new NDCs before COP30 in Novembre. "ENOUGH OF BROKEN COMMITMENTS" Andre Correa do Lago, Brazilian ambassador and president of COP30, was in Beijing for a week last week. He met with Chinese officials to discuss national commitments. Brazil is encouraging all countries to align their NDCs with the Paris Agreement. The COP30 global climate summit in November in Belem, Amazonia, will mark the 10th anniversary since the Paris Accord. Signatories of the Accord agreed to limit the warming of pre-industrial levels to no more than 2 degrees Celsius. Scientists believe that a warming of 2.6 degrees Celsius could cause the collapse or several natural systems on which humans rely. "We are committed to making COP30 a significant joint effort in implementing climate commitments. According to a statement released by Lula's office, the planet had enough broken promises. It would be hard to close the gap after U.S. president Donald Trump withdrew his country from the Paris Agreement. The U.S. is the largest economy in the world. CHINA PUSH Brazilian diplomats are hopeful that it is possible if China, which is the biggest polluter in the world, and other emerging economies, including Europe, make a more ambitious commitment. According to a Brazilian Diplomat, the U.S. wasn't invited to the event. Brazil, as the BRICS president for this year, is putting a greater emphasis on climate change because of China's role in global climate talks. The BRICS group includes China and many other developing countries. Lula will meet Xi personally at least twice by the deadline of September for new pledges. This includes a gathering of BRICS Leaders in Brazil in June. China has not indicated that it will increase its target and its economy is showing signs of sagging due to the punishing trade conflict with the U.S. "The economic concerns which are constraining China's NDC remain, if they are not worsened by Trump's Tariffs," said Yao Zhe of Greenpeace, Beijing's global policy advisor. The Chinese Foreign Ministry has not commented specifically on China's plans to meet its emission target. Climate governance is facing a number of challenges. A spokesperson for the Ministry said that strengthening multilateralism, international cooperation and global issues is essential to effectively addressing global challenges. (Reporting from Manuela Andreoni and Lisandra paraguassu, in Sao Paulo; Colleen howe and Michelle Nichols in Singapore. Additional reporting by Colleen in Beijing and David Stanway. Editing by David Gregorio & Aurora Ellis.
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US Supreme Court to revisit challenge to California emission standards
The U.S. Supreme Court appeared to be sympathetic to fuel producers' bid to challenge California's vehicle emission standards and electric cars in an air pollution case under federal law. This is a case that involves the Democratic-governed State's ability to combat greenhouse gases. The Justices heard arguments from a Valero Energy sub-division and groups representing the fuel industry in their appeal of a lower courts ruling that they did not have the legal standing required to challenge the 2022 U.S. Environmental Protection Agency's decision to allow California to set its own rules, separate from the federal government. Both conservative and liberal justices asked questions that indicated the court would let fuel producers pursue the case. The court has not yet announced a new rule that will make it easier for more groups and businesses, including those who are challenging government regulations that could impact their bottom lines, to do so. The court is conservatively majority 6-3. The dispute revolves around an exception given to California under former Democratic President Joe Biden to the national vehicle emissions standards set by the agency in accordance with the landmark Clean Air Act antipollution law. Congress waived the preemption rule, allowing California to set regulations that were stricter than federal standards. Valero Diamond Alternative Energy, along with other groups, challenged the reinstatement California's waiver. They argued that the decision exceeded EPA's authority under the Clean Air Act. It also hurt their bottom line because it lowered demand for liquid fuels. The government has tipped the playing field against us and prevented us from selling our product freely," Jeffrey Wall, an attorney for the challengers told the justices. Liberal Justice Elena Kagan said that Wall's claim of government slanting the market in this case "seems to be an easy thing" to prove. Edwin Kneedler is a lawyer in the Republican administration of President Donald Trump. He agreed with the U.S. Court of Appeals of the District of Columbia Circuit, that the challengers did not show the evidence they needed to be able to sue. Kagan, however, told Kneedler the EPA had declared that the waiver will reduce gasoline emissions. This seemed to validate the concerns raised by the challengers. Many questions focused on whether or not the challengers' assertions about the regulation's impact on carmakers, and therefore fuel producers, amounted to "common-sense inferences" that would allow them to sue. Amy Coney Barrett, a conservative justice, said that relying on "common sense" is not a heavy burden. California, which is the largest state in the U.S., has been granted more than 75 waivers, since 1967. These have required EV sales and emissions to be higher. The EPA action in 2022 reinstated a waiver that allowed California to set their own tailpipe emission limits and mandate zero-emission vehicles through 2025. This reversed a decision taken during Trump's initial administration, which revoked the waiver. Trump's administration told the court it was reevaluating the 2022 reinstatement, which could lead to a withdrawal of waiver. The D.C. The D.C. Circuit dismissed the lawsuits by 2024. It found that Valero, the states and other plaintiffs lacked standing to file their claims. There was no proof that a favorable ruling would have an impact on automakers' decisions and lead to a reduction in the number of electric vehicles and a rise in combustion vehicle sales. The Supreme Court will likely rule before the end of June. In recent years, the court has been skeptical of federal regulatory agencies' expansive powers and has limited the EPA's power in several important rulings. The court blocked in 2024 the EPA "Good Neighbor Rule" aimed at reducing ozone emission that could worsen air quality in neighboring states. The court weakened the EPA’s ability to protect wetlands, and combat water pollution in 2023. In 2022 it limited the agency's ability to reduce carbon emissions from coal and gas-fired plants under the Clean Air Act.
Commodities-Gold rallies and crude oil declines after Trump's tariffs
The price of crude oil fell on Wednesday and the price of gold rose after U.S. president Donald Trump announced tariffs on U.S. imported goods. This move fueled a global trade conflict and raised concerns about a possible economic slowdown.
Grain futures declined ahead of Trump's announcement of tariffs. They were likely to continue their losses, as traders waited for retaliatory action from global importers who are easy targets of retaliation.
Aluminum prices fell on Wednesday as investors weighed up trade action against supply concerns.
Trump announced on Wednesday that all U.S. imports would be subject to a baseline 10% tariff, and he'd impose even higher duties against dozens of major trading partners including China and the European Union.
Trading partners should respond to countermeasures with their own.
U.S. Stock Futures fell after the announcement.
Oil prices dropped to negative territory following a dollar-plus increase in the post-settlement market ahead of the announcement of tariffs on fears that a trade war could dampen demand.
The oil market has reacted negatively due to fears that the U.S. Tariffs will slow economic growth in the rest of the world and other countries may retaliate with tariffs," said Andrew Lipow of Lipow Oil Associates, based in Houston.
Grain futures fell on Wednesday, as traders feared that U.S. exports would suffer if Trump’s tariffs caused retaliation by major buyers such as China, the top soybean importer in the world, and Mexico, No. Mexico is the world's No. 1 corn purchaser.
Mike Zuzolo is the president of Global Commodity Analytics. He said, "We are likely to see a weaker open due to a weaker Asian Market." The dollar's weakness could offer support to the market.
(source: Reuters)